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Top analysts say they buy stocks like Amazon and Yelp

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Stock prices have skyrocketed on Wall Street since the rebound this month. Despite encouraging up-to-date information on potential coronavirus vaccines, disappointment of unemployment data and a surge in coronavirus cases have surprised investors.

Mayor Bill de Blasio of New York City has announced that schools will return to distance learning to mitigate the spread of the virus without helping investors sentiment.

“The market has really been in celebration mode since the election day and overcame it again last week. The idea now is that people will profit ahead of the expectation that taxes related to capital gains could rise in 2021. I think I’m starting to consider, and I think I’m considering moving from COVID to post-COVID … even if it comes back, all the vaccine news tells us. [is] Post-COVID comes first, “said John Storzhus, chief investment strategist at Oppenheimer.

Finding stocks that are ready to outperform the wider market is not easy, as many question marks remain. One approach is to get inspiration from analysts who have a proven track record of success. TipRanks Analyst Prediction Service seeks to identify the best performing analysts on Wall Street. These are the analysts with the highest success rates and the highest average rate of return per valuation.

Here are five of the best performing analysts’ favorite stocks today.

Amazon

In response to promising data on Pfizer and Moderna’s coronavirus vaccines, investors have moved away from pandemic beneficiaries such as Amazon. But five-star analyst Laura Martin continues to be bullish on e-commerce and computing giants. To this end, she repeated a buy valuation and a $ 3,700 price target (potentially up 19%) on November 18.

Following the vaccine news, Martin conducted a survey to assess consumer shopping habits and future plans. In a survey of about 330 consumers, 80% of respondents said they would shop the same or more online after the pandemic. “AMZN is a leader in e-commerce market share and we believe it is the largest beneficiary of this trend,” she commented.

When Martin asked if shopping habits would change when vaccines became available, about 69% said they would use Amazon in the same way as during a pandemic when Amazon’s demand surged, another 15%. I answered that I would shop at Amazon. More sites.

For the next holiday season, analysts wanted to know when consumers would shop. Forty-four percent of those surveyed say that 50% to 100% of their holiday shopping has already been completed.

“In our view, Amazon’s Prime Day in October has pushed the shopping calendar forward. Given the advantage of the starters, AMZN has become the largest beneficiary of spending moving early in the calendar. I expect it to be, “explained Martin.

With a 66% success rate and an average rate of return of 24.9% per rating, Martin ranks 67th on TipRanks’ list of best performing analysts.

Bentley Systems

RBC Capital 5-star analyst Matthew Hedberg has upgraded software developer Bentley Systems to buy from Hold on November 15th. The price target is $ 43 and analysts see a 26% increase.

This upgrade follows the remarkable performance of a publicly traded company in the first quarter. In Hedberg’s view, the risk / compensation profile is much more attractive as the stock is “closer to the peer and discounted to premium peers such as Ansys and Autodesk”, coupled with pullbacks after mid-October. ..

Bentley generated $ 203 million and $ 0.17 in revenue and EPS, respectively, against the $ 197.3 million and $ 0.13 consensus estimates during the quarter. In addition, adjusted EBITDA reached $ 73.6 million, easily surpassing the $ 56.5 million street call. But most notable for Hedberg was 9% ARR growth, which exceeded his 8% forecast.

Going forward, Bentley’s guidance on CY20 also exceeded consensus estimates.

“Overall, vaccines could benefit Bentley, and President Biden could boost US infrastructure investment,” Hedberg said. Overall, a long-term durable winner. I like the opportunity to own a car. “

Hedberg, who ranked in the top 25 in the TipRanks ranking, boasts a 74% success rate and an average rate of return of 27.2% per rating.

PDF solution

PDF Solutions announced on November 17 that it will acquire Cimetrix, a software interface company for capital equipment that enables data collection from manufacturing tools. For Northland Capital’s top Gas Richard, the deal reaffirmed his bullish treatise, and analysts repeatedly evaluated buying the next day. In addition to the call, he continues to allocate a $ 30 price target, suggesting a potential 43% rise.

In accordance with the terms of the agreement, PDFS will pay $ 35 million in cash after deducting cash from Cimetrix’s balance sheet and the transaction is expected to close in the fourth quarter of 2020.

The move will accelerate efforts with equipment suppliers as Cimetrix will provide a sales channel for equipment vendors’ software development teams and Cimetrix data will act as a “feedstock to PDFS’s Exensio big data analytics platform.” Part of a focused PDF solution. Richard’s opinion. The PDF platform is pervasive in fabs, fabless, and OSAT, but has limited exposure to equipment suppliers.

“The combination of PDFS / Cimetrix allows equipment suppliers to collect operational data from their equipment and use the PDFS big data analytics platform and AI to analyze their operational, performance, and process control data. PDFS / Cimetrix We are confident that we can improve by working with equipment suppliers. Process control, equipment uptime, reduced MTBF. This acquisition brings Exensio closer to the de facto standard big data analytics platform in the semiconductor industry and electronically brings the company. We will expand to manufacturing services, EMS, and display manufacturing, “says Richard.

Based on analysts’ estimates, acquisitions could increase in CY21, adding $ 0.02 to $ 0.04 to revenue.

TipRanks shows that the 52nd-ranked analyst has a 72% success rate and an average rate of return of 28.2% per valuation.

Cell dynamics

Cytokinetics, a biopharmacy company that develops muscle activators and inhibitors as potential treatments for people with debilitating disorders that impair muscle performance, has been endorsed by Joseph Pantginis of HC Wainwright. In addition to maintaining a buy valuation on November 16, he maintained a $ 43 price target on the stock price, suggesting a potential 180% rise.

Pantginis is a selective cardiac myosin activator for the potential treatment of heart failure with reduced ejection fraction (HFrEF), omecamtiv mecarbil, which “continues to be promising for large pre-designated populations. Yes, “he tells the client.

In October, CYTK and its partners Amgen and Servier met the primary combined efficacy endpoint of reducing CV death or HF events, but the secondary endpoint of reducing CV death. I said I didn’t. That said, last week Cytokinetics released the results of GALACTIC-HF, a phase 3 outcome study of omecamtiv at AHA, where the drug is potentially more in a pre-designated group of patients with more severe HF. It was shown to show a great therapeutic effect. Depends on left ventricular ejection fraction (LVEF).

It should be noted that omecamtiv’s “fate” may depend on “Amgen’s views on drugs, along with a complete analysis of data centered on physician and payer views and the results of market research analysis.” There is. Pantoginis. However, analysts remain optimistic.

“A more detailed analysis has not yet been performed and more details are needed to reveal the actual opportunity for omecamtiv in HF, but these findings show the therapeutic applicability of the defined critical population. Based on, we believe it suggests a possible path to approval of omecamtiv. “Pantoginnis explained.

Pantginis is ranked 169th out of 7,093 analysts tracked by TipRanks.

Yelp

For RBC analyst Shweta Khajuria, Yelp is currently one of her top stock picks. As a sign of bullishness, five-star analysts raised their price target from $ 29 to $ 34 (potentially up 7%) and repeated buying valuations on November 18.

Khajuria told clients that Yelp was “currently a vaccine strain for the next few quarters, and the recent rise in stock prices after Pfizer’s vaccine announcement is a good example.”

Analysts explained this: “There is a lot of uncertainty between the current and large-scale distribution of actual vaccines, but Yelp has recovered given the fundamental improvements we saw in the third quarter. We believe that we are in a good position to benefit from, and that snapbacks in the restaurants and bars, beauty and fitness, health and shopping categories will be relatively fast as the economy opens up. It is based on the belief of. It is a tailwind in addition to product improvements and improvements in home and local trends driven by the mundane. “

Khajuria believes that as the economy opens, Yelp can benefit from improvements in the macroeconomic environment, given that advertising costs correlate with GDP growth in the post-coronavirus environment. I will. Moreover, in analysts’ opinion, product changes, which have been an important focus for the company over the past year and a half, should be a good omen for Yelp.

“Management hopes that Yelp will be recognized as occupying a larger share of the advertiser’s budget due to improved value propositions to advertisers, and in fact will bring greater profits,” said Cajuria. Added.

When it comes to market development strategies, Yelp’s local sales force is down 45% year-on-year, but management expects it to remain intact after the coronavirus infection, according to Khajuria.

Khajuria is currently tracking an 89% success rate and an average rate of return per valuation of 80.3%.

Top analysts say they buy stocks like Amazon and Yelp

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